Obamateurism of the Day

posted at 8:05 am on September 14, 2009 by Ed Morrissey

This weekend, Barack Obama offered once again an argument he first made in the speech to Congress last Wednesday night, which is that he could realize four trillion dollars in savings “over the long term” from the health care industry by merely reducing the cost growth by one-tenth of one percent each year. Bear in mind that the entire health-care industry generates $2.3 trillion each year, about a third of it from government funding. Such a claim stretches the notion of “long term” into something Biblical:

And as I have said over and over again, I will not sign a plan that adds one dime to our deficits – period. This plan will be paid for. The middle-class will realize greater security, not higher taxes. And if we can successfully slow the growth of health care costs by just one-tenth of one percent each year, it will actually reduce the deficit by $4 trillion over the long term.

On Saturday, when I first featured this, I showed this spreadsheet from my favorite economist, King Banaian, which showed that the long term would have to be defined as 3,634 years:

Since government only accounts for a third of the industry at the moment, that means that only $11 billion over 10 years would go to deficit reduction, assuming that government health-care spending didn’t increase with ObamaCare. At that rate, it would take longer to realize $4 trillion in deficit savings than all of the years since Moses parted the Red Sea until today.

However, a reader pointed out that King hadn’t accounted for interest savings in his projections. The reader said that by adding up all of those savings, Obama gets to his $4 trillion much more quickly than Methuselah Time. King took the challenge and recalculated with a very, very generous assumption of 7% interest, and voila! It does shorten the time frame:

This does change things quite a bit … but nowhere close to even one trillion dollars, let alone $4 trillion. In 40 years, roughly the amount of time Moses led the Israelites around the desert, slowing growth 0.1% each year only nets $827 billion across the entire industry, with only a third of that savings by government that might get applied to the deficit. One third comes to about $292 billion in aggregate savings over 40 years, leaving Obama around $3,708,000,000,000 short of his promise.

So how long would it take to get to $4 trillion if we count interest and compound it? The good news is that it won’t take 3,634 years. It would take until 2085, which is still a very, very long time to wait to see whether Obama’s got this right. And it’s only applicable if the ObamaCare bill (a) actually reduces costs by 0.1% each year, and (b) if Obama doesn’t spend the money on something else.

Oh, and the amount Obama himself will add to the deficit over the next 10 years? Five trillion dollars.

For an administration that claims to value science, they seem to take a faith-based approach to mathematics.

Update: One commenter warns that Obama will keep his promise by adding a whole lot of dimes to the deficit. It reminded me of this classic cinema moment (Warning: salty language ahead):

If Obama gets his way, we’re gonna have to go back and get a &^%$load of dimes, I tell you.

Got an Obamateurism of the Day? If you see a foul-up by Barack Obama, e-mail it to me at [email protected] with the quote and the link to the Obamateurism. I’ll post the best Obamateurisms on a daily basis, depending on how many I receive. Include a link to your blog, and I’ll give some link love as well. And unlike Slate, I promise to end the feature when Barack Obama leaves office.

Illustrations by Chris Muir of Day by Day. Be sure to read the adventures of Sam, Zed, Damon, and Jan every day!

For an administration that claims to value science, they seem to take a faith-based approach to mathematics.

Observation of the day.

It seems as if the filthy liar is just putting out numbers without backing them up with concrete evidence that they are legitimately reasonable. We must not let him get away with the PFM accounting method.

For all of you who were is Washington DC this weekend. Way to GO!! You all are awesome and I only wish that I could have been there. I watched from the bed due to back problems and was inspired by everyone!!! True Americans!!!!

Kanye Wizzle appointed new “Green Jobs Czar”…
Kumar and Kanye said to be ‘blunt-side’ cogitatin’ some new numbers… will ‘testify’ later, with ‘no signifyin’, just ‘straight-up representin’… more to follow..

Wow, I just wish he had been one of my algebra professors in college, I probably would have graduated with honors! Better yet, I wish he were my accountant….he’s amazing with numbers….working magic, he is!

Fox news this morning said that these three are a part of a long list and videos will be released one at a time.
Pass the popcorn!

milwife88 on September 14, 2009 at 8:28 AM

Drip….Drip…..Drip….. So much more effective in bringing down this corrupt organization than if it all comes to the surface at once. Here’s hoping the scandal can bring down much of the liberal establishment and the filthy liar in the White House too.

Don’t freak out Allah. He’ll give you your own headline and try to diminish you for referencing such blatant crap. Any biblical historical reference should be belittled and crushed because, somehow, that helps the cause.

So how long would it take to get to $4 trillion if we count interest and compound it? The good news is that it won’t take 3,634 years. It would take until 2085, which is still a very, very long time to wait to see whether Obama’s got this right. And it’s only applicable if the ObamaCare bill (a) actually reduces costs by 0.1% each year, and (b) if Obama doesn’t spend the money on something else.

Which, coincidentally, ties back to Social Security. Even the “interest” earned by the “trust fund” plowed right back into the Treasury to be spent.

What’s not figured into his total, is the income he’s going to realize from the pimps and hookers he has installed into his communities; His “Creative Arts Czar” shall be taxing them using the Geithner/Rangel Tax Preparation software.
That should put him over the top!

Well, that’s not gonna happen! According to the latest video from James and Hannah, the Brooklyn office of ACORN has suggested that hookers and pimps bury their money in a “tin” in the backyard. Barry’s gonna need a “Shovel Czar” to retrieve any tax money.

President Barack Obama will hold a rally on the campus Thursday to build support for health care reform.

The appearance, Obama’s third at the university since 2006, is expected to be held in the Comcast Center from noon to 1 p.m. and is part of an attempt by the Obama administration to reshape the conversation about the controversial health care legislation working its way through Congress… The rally is free and open to the public… Both of Obama’s earlier university appearances were feel-good affairs before largely friendly crowds. But Obama’s recent appearances throughout the country have drawn heavy protests by conservative groups who accuse the president of spreading socialism. Some protesters have been videotaped using racist language or carrying loaded guns.

While protesters are expected to gather, Williams said it is too early to speculate what type of crowd will actually attend.

By 2085, Obama will be 124 years old (older than Moses at his death). Except if some EEEEEEEVIL Republican on an end-of-life counseling committee pulls the plug on the Six Trillion Dollar Man to save Medicare in the meantime.

Let the average American try this Obama Communist math when reporting income, payroll, capital gains etc. and they will end up in the federal prison. This is what galls the tax protesters! They must be taxed with real math and Congress spends with the Liar-in-chiefs numbers. As businesses and citizens go bankrupt in record numbers they are absolutely hassled to death by local, state, and federal tax collectors demanding revenue that is no longer there! They go ape and don’t believe everyone is laid off, no sales=no sales tax, etc! It’s like trying to get rid of a malignant cancer to escape the clutches of tax collectors! No wonder everyone is ticked off at this Kenyan, Communist, Liar,Racist,Narcissist, Weasel!

Here’s a good visual on what the healthcare bill’s real impact looks like. Of course, these are based on the bill circulating over the summer, but gives a good idea what we’re up against in considering national health care.